Suburban property valuation: premium or discount for non-residential outbuildings?

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The value of that lot is likely to enhance your existing lot to make it "developable" in the distance future. Without knowing where you are it is really hard to tell what it is worth.
 

JHZR2

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The value of that lot is likely to enhance your existing lot to make it "developable" in the distance future. Without knowing where you are it is really hard to tell what it is worth.

Well it wouldn’t make my lot developable because it’s not adjacent to mine.

It would make either of the neighboring lots larger of course.

It’s NJ. High taxes, high cost of living. But none of the ridiculous prices of CA. $MM properties abound, but you usually are buying a decent commute and a local school district that is walkable, in a safe inner ring suburb.
 
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one big variable here is the ease (or lack of) getting a zoning variance. I have property in a few locations, and it is radically different. In some places I could build almost anything on any parcel, given the "pro infill" climate; other places it would take 10 years to build a higher front fence (barely exaggerating here).

If a variance will be hard to attain--now or on the foreseeable future, the value is orders of magnitude less than if it can be developed. Ultimately with a parcel like this it sounds like the two adjoining neighbors to the property will really be the ones who determine the value--and if they're not interested, the value will be pretty low.
 

JHZR2

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one big variable here is the ease (or lack of) getting a zoning variance. I have property in a few locations, and it is radically different. In some places I could build almost anything on any parcel, given the "pro infill" climate; other places it would take 10 years to build a higher front fence (barely exaggerating here).

If a variance will be hard to attain--now or on the foreseeable future, the value is orders of magnitude less than if it can be developed. Ultimately with a parcel like this it sounds like the two adjoining neighbors to the property will really be the ones who determine the value--and if they're not interested, the value will be pretty low.
It’s a 100year old building grandfathered into current use. No intended changes.
 
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Well it wouldn’t make my lot developable because it’s not adjacent to mine.

It would make either of the neighboring lots larger of course.
Are you trying to use it as a squatter property and eventually sell to either of the neighbor or buy either of the neighbor's property and develop? If not, then why are you buying it?
 

JHZR2

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Are you trying to use it as a squatter property and eventually sell to either of the neighbor or buy either of the neighbor's property and develop? If not, then why are you buying it?

no...
In my neighborhood, there is an undersized property that has only an outbuilding, a two car garage with loft. It has street access but is otherwise locked between two residential properties that do not own it.

...

It really only has utility to the two neighboring properties, and someone like me who wants the space and is a few houses away. It is not an investment, it’s not well set up to be a rental space (coming from someone who in the last year bought and owns a 10-rentable bay garage building, and understands the cap rate and NOI values to cost such a thing). This is different. It is niche.
 

JHZR2

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I would make sure there is no old buried (leaking) fuel oil tank given the age of the building.
There is an above ground tank. At some point the building had heat, Id have no need, and dubious it has been in use in 25 years or more.

I’m OK with dealing with that. Plenty of those sorts of things in old northern towns. My parents and grandparents had to deal with them. I had one in my basement that had been take out of use definitely before the 90s... it didn’t cost much to get it removed with the correct permits and certs. An above ground tank should be easier.
 
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